Interest Rate Converter Definition Use our Interest Rate Converter Calculator to quickly convert Annual Percentage Rates to monthly interest rates and monthly interest rates into an APR. With so many different short-term loan vehicles and other financial products available to consumers, deciphering the interest you are paying or the interest that is being paid to you can be very difficult.
Why People Need to Convert Interest Rates If you are a borrower, staying educated about the interest charges you are incurring on a monthly or annual basis is extremely important. If you own an interest bearing account, understanding how much interest you are earning monthly can help you decide if you are making the right investment decisions.
Calculations By Hand Are Too Difficult While you can convert an APR into a monthly interest rate by using the appropriate formula, doing this can take time that you are not willing to dedicate to the process. Not only must you know the different formulas to convert interest each way, you also need to have some math skills to come up with accurate figures.
How the Converter Can Help You Get Accurate Conversions To save you time and ensure the calculations are done right, our Interest Rate Converter tool is programmed with the right formulas. The computer program will take the information that you enter into the fields and display the conversion in less than two seconds. The Interest Rate Converter allows you to enter the following information:
Interest rate you are being charged or you are earning
Type of conversion: Choose whether you want to convert the interest rate from monthly to annual or from annual to monthly
After you enter the information into the appropriate fields you will then need to press the “calculate” button located within the converter program. You have the option to print the conversion or press the “back” button to correct the data you entered previously.
Use the Formulas the Converter Uses The converter also describes the formulas that are used to convert interest monthly to annually or annually to monthly if you are at all interested in knowing. If you feel like seeing just how accurate the calculator is and you have free time, you can use these formulas and you will come up with the same interest rate that is displayed on the converter. When you are converting interest, here are some things that you should keep in mind:
If monthly interest rates are variable, the converter will not be accurate with converting APR’s.
This converter does not take any special fees into considering when you are converting monthly interest charges into APR for a short-term payday loan. Because of this, you should consider the fees you are being charged before relying on the calculations.
Also, check out some of our similar interest rate calculators like the Annual Effective Interest Rate Calculator and the Compound Interest Calculator.
How to Calculate Interest Rate Converter Let's be honest - sometimes the best interest rate converter calculator is the one that is easy to use and doesn't require us to even know what the interest rate converter formula is in the first place! But if you want to know the exact formula for calculating interest rate converter then please check out the "Formula" box above.